Commissioner op Agriculture 65 



state of New York to the effect that the oleomargarine law of the 

 state had been declared unconstitutional. A campaign of this 

 kind was waged for some time. Then the agents of the oleomar- 

 garine people began to canvass for the goods, and each one, 

 carrying with him this view of the law, naturally impressed the 

 dealer, who desired to make large profit, that here was a chance 

 without dangerous results to him from prosecution. As a rule, 

 dealers were given to understand that all they had to do was to 

 pay the United States government tax and they would be safe. 

 In my judgment, the average dealer, or would-be dealer, felt when 

 he received his tax certificate that he had really received a license 

 of sale. It seems that this tax certificate is generally so construed. 

 As a matter of fact, it is not a license; it gives no authority or right 

 to deal in the commodity, but is simply a receipt for taxes paid. 

 This notion, having been impressed upon the grocerymen in the 

 state, has naturally led them to pay the government tax and to 

 put in a stock of the goods for sale. They have also been im- 

 pressed to a large extent with the idea that, notwithstanding the 

 fact that the goods might look like butter, if they contained no 

 artificial coloring matter they could still be sold. The sale of such 

 goods, however, is a violation of the provisions of the Agricultural 

 Law and such goods cannot legally be sold within this state. 

 The only oleomargarine that can be sold here legally is that 

 not in imitation or semblance of butter, and must be put up in 

 packages not to exceed 5 pounds and be wrapped and sealed as pro- 

 vided by section 41 of the Agricultural Law, as amended by your 

 honorable body during the session of 1909. The impression, 

 however, which has been received by the grocerymen that they 

 can sell the class of goods (hat look like butter but contain no 

 artificial coloring matter has been derived largely from repre- 

 sentations being made to them, such representations being based 

 upon a distinction drawn between two classes of oleomargarine 

 in the enforcement of the National Act. Thai statute provides 

 for taxation in words as follows: 



That upon oleomargarine which shall be manufactured and sold, or 

 removed for consumption or use, there shall be assessed and collected a tax 

 of ten cents per pound, to be paid by the manufacturer thereof; and any 

 fractional part of a pound in a package shall be taxed as a pound: Pro- 

 vided, When oleomargarine is free from artificial coloration that causes it 

 to look like butter of any shade of yellow, said tax shall be one-fourth of one 

 cent per pound. 



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